Industrial Harvest

At France’s insistence, agriculture ministers of the G20 met this week for the first time ever to discuss ways to curb increasingly volatile (and ever-higher) food prices.

France was pushing pretty hard for curbing speculative activity in food commodities markets – Sarkozy and his agricultural minister were talking tough going into the negotiations, stating that France would not be backing down in these negotiations, even at the expense of getting to a deal.  As much as I admire France for taking this on, they must really relish their world role as surrender monkeys, because no matter how well intentioned the resulting “action plan”, well, it’s weak and watered down and no match for any food price crisis.   The high points of the agreement are an attempt at greater market transparency and a pilot program establishing emergency humanitarian grain reserves.  Other than some weak statements of consensus, that’s about it.  Any restrictions on / further regulation of speculation will be deferred to the G20 finance ministers, who the agriculture ministers “strongly encourage” to take action.  Pardon my cynicism for believing that the finance ministers will take that recommendation straight to the round file.